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 1967 Shelby G.T. 500 Convertible

 

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Home Factory Paperwork Ford North American Racing Program 1968-1970
 
 
Document:

North American Program of Racing
and Related Activities for the Model Years 1968-1970.

Source: Ford Motor Company
Date: July 12, 1967

These pages are from a 94-page presentation. They teach us that the Shelby Program was not a money-making venture the way it was being run.

When analyzed alongside the DSO database and December 8, 1967 letter from A.O. Smith to Ford Motor Company, this document becomes a key component in answering the question of "why only a single convertible was built." Shelby's plan to offer six different models in 1967 was devastated by the 'launch problems' and reduced ability to produce cars. The operation hemorrhaged money up until Ford made the decision to terminate the program in May 1967.

Shelby American Profit & Loss Summary 1965-1967

In larger type for older eyes:

In 1965, Shelby American incurred an operating loss of $311,000, primarily because of launching difficulties which resulted in reduced production levels. These losses were offset in 1966 by operating profits of $310,000. A profit guarantee payments of $101,000 was made in 1966 ($50,000 per year as provided in the profit guarantee agreement with Shelby American).

Preliminary indications are that Shelby American will sustain an operating loss of $764,000 in 1967. Losses again resulted from launching problems and associated declines in production/sales volumes. Accordingly, a profit payment of $814,000 will be made from the existing reserve of $2 million. In addition, a $400,000 reserve will be established for anticipated parts obsolescence pending completion of a study of production materials and high performance parts inventories.

A reorganization of Shelby American operations and a resourcing of 1968 model production to [A.O.] Smith Plastics in Ionia is currently in process. Preliminary information indicates that important operating and financial benefits should result from these changes. Specific plans are projected financial results will be submitted for approval in the near future.


Notes:

  • A quick drill-down into the numbers:

      Year    Cars Built    Profit/(Loss)    P/(L) per car
      1965         500       (
    $311,000)         ($622)
      1966       2,335        $310,000           $133
      1967       2,684       (
    $764,000)         ($285)
  • Adjusted for inflation, the $764,000 loss suffered by Shelby in 1967 would be roughly equivalent to $5,522,484 in 2016.
     
  • How coincidental is is that the profit in 1966 very conveniently offsets the prior year's losses? I have no doubt that had it not been for 1,000-car Hertz deal in 1966, which, as their largest shareholder, Ford most likely forced on the rental car company, the Shelby Program would have lost money that year as well.

 
See Also: Letter from A.O. Smith to Ford Motor Company

 
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